Firm Size and Credit in Argentina

Sebastian Auguste (), Ricardo Bebczuk () and Gabriel Sanchez

No IDB-WP-396, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: The goal of this paper is to study the link between bank credit (and internal funding) and average firm size in Argentina. Besides the fact that economic growth tends to go hand in hand with larger firm size, the topic is of particular interest because of the severe credit crunch in Argentina in the aftermath of the 2001-2002 financial crisis. To this end, a novel three-digit industry-level dataset spanning the 2000-2010 period was constructed. The results confirm the expected positive impact of credit supply on average firm size. Furthermore, the study expands on common knowledge by testing the sensitivity of firm size to internal funding and the differential financing behavior of the primary and the manufacturing sector. The results do not seem to be driven by endogeneity bias.

JEL-codes: D22 D23 G21 G32 (search for similar items in EconPapers)
Date: 2013-03
New Economics Papers: this item is included in nep-cfn, nep-dev and nep-hme
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Firm Size and Credit in Argentina (2013)
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